U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History

U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History

HSBC Executives Face Grilling Amid Money Laundering Allegations

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Michael Gallagher, former executive vice president and head of PCM North America for HSBC Bank USA, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Michael Gallagher, former executive vice president and head of PCM North America for HSBC Bank USA, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Thomas Curry, comptroller of the U.S. currency, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. The Office of the Comptroller of the Currency knew of weaknesses in HSBC Holdings Plc's anti-money laundering program, yet was “often at a loss, however, to prescribe how HSBC could eliminate” problems, Senator Tom Coburn said at the hearing. Photographer: Jonathan Ernst/Bloomberg via Getty Images

Thomas Curry, comptroller of the U.S. currency, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. The Office of the Comptroller of the Currency knew of weaknesses in HSBC Holdings Plc's anti-money laundering program, yet was “often at a loss, however, to prescribe how HSBC could eliminate” problems, Senator Tom Coburn said at the hearing. Photographer: Jonathan Ernst/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., left, and Stuart Levey, chief legal officer for HSBC Holdings Plc, testify at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., left, and Stuart Levey, chief legal officer for HSBC Holdings Plc, testify at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Thomas Curry, comptroller of the U.S. currency, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. The Office of the Comptroller of the Currency knew of weaknesses in HSBC Holdings Plc's anti-money laundering program, yet was “often at a loss, however, to prescribe how HSBC could eliminate” problems, Senator Tom Coburn said at the hearing. Photographer: Jonathan Ernst/Bloomberg via Getty Images

Thomas Curry, comptroller of the U.S. currency, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. The Office of the Comptroller of the Currency knew of weaknesses in HSBC Holdings Plc's anti-money laundering program, yet was “often at a loss, however, to prescribe how HSBC could eliminate” problems, Senator Tom Coburn said at the hearing. Photographer: Jonathan Ernst/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., second from left, departs after testifying at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., second from left, departs after testifying at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., left, and Stuart Levey, chief legal officer for HSBC Holdings Plc, testify at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., left, and Stuart Levey, chief legal officer for HSBC Holdings Plc, testify at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Stuart Levey, chief legal officer for HSBC Holdings Plc, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Stuart Levey, chief legal officer for HSBC Holdings Plc, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Stuart Levey, chief legal officer for HSBC Holdings Plc, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Stuart Levey, chief legal officer for HSBC Holdings Plc, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., looks through documents during a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., looks through documents during a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Stuart Levey, chief legal officer for HSBC Holdings Plc, left, confers with Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., before the start of a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Stuart Levey, chief legal officer for HSBC Holdings Plc, left, confers with Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., before the start of a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Stuart Levey, chief legal officer for HSBC Holdings Plc, left, confers with Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., before the start of a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

Stuart Levey, chief legal officer for HSBC Holdings Plc, left, confers with Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., before the start of a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images *** Irene Dorner

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images *** Irene Dorner

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images *** Irene Dorner

Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images *** Irene Dorner

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

U.S. Senator Tom Coburn, a Republican from Oklahoma, left, speaks with Stuart Levey, chief legal officer for HSBC Holdings Plc, center, and Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., before a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Jonathan Ernst/Bloomberg via Getty Images

U.S. Senator Tom Coburn, a Republican from Oklahoma, left, speaks with Stuart Levey, chief legal officer for HSBC Holdings Plc, center, and Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., before a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Jonathan Ernst/Bloomberg via Getty Images

HSBC Executives Face Grilling Amid Money Laundering Allegations

Bloomberg

Senator Carl Levin, a Democrat from Michigan, left, and Senator Tom Coburn, a Republican from Oklahoma, right, listen as Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images *** Carl Levin; Irene Dorner; Tom Coburn

Senator Carl Levin, a Democrat from Michigan, left, and Senator Tom Coburn, a Republican from Oklahoma, right, listen as Irene Dorner, president and chief executive officer of HSBC North America Holdings Inc., testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings Plc’s head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images *** Carl Levin; Irene Dorner; Tom Coburn

Michael Gallagher, former executive vice president and head of PCM... Nieuwsfoto'sCapitol Hill,Congres,Criminaliteit,De media,Financiën,Gerechtigheid,Getuigenis,Horizontaal,Noord- & Zuid-Amerika,Noord-Amerika,Overheid,Politiek,Terechtzitting,Terrorisme,Verenigde Staten,Vicepresident,Voormalig,Washington DC,WetPhotographer BloombergCollection: Bloomberg 2012 BloombergMichael Gallagher, former executive vice president and head of PCM North America for HSBC Bank USA, testifies at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee's Permanent Subcommittee on Investigations in Washington, D.C., U.S., on Tuesday, July 17, 2012. HSBC Holdings PlcÖs head of group compliance, David Bagley, told the Senate panel he will step down amid charges the bank gave terrorists, drug cartels and criminals access to the U.S. financial system by failing to guard against money laundering. Photographer: Joshua Roberts/Bloomberg via Getty Images